Company Overview Who is Sino Australia Oil and Gas? Sino Australia Oil and Gas Limited is the Australian holding company of Zhaodong Huaying Drilling Company (Huaying) – an integrated technical services company providing Enhanced Oil Recovery (EOR) services and underground work consultations for oil and gas drilling enterprises. Huaying was founded in the People’s Republic of China in December 2009 and is an established participant in the Chinese EOR services market. As such, the Company has local certifications, established connections in Chinese government and strong local knowledge of the market, geography and language. Chairman and CEO, Mr Shao Tianpeng, and his senior management team are Chinese nationals with extensive experience in the Chinese oil and gas industry. Company Snapshot Oil and gas drilling services company founded in December 2009 as Zhaodong Huaying Drilling Operational headquarters in Daqing, north-east China – ‘The Oil Capital of China’ Developed and owns two patented Enhanced Oil Recovery (EOR) technologies that are proven to improve well economics Strategy to consolidate market share in burgeoning Chinese (EOR) services market and expand through licensing and distribution into new market territories. What do Sino Australia Oil and Gas do? Sino Australia owns two patented, proven and cost-effective EOR drilling technologies, which are applicable to the majority of oil and gas wells in China. These technologies are sidetrack drilling techniques that improve the recovery efficiency of the oil or gas asset and lengthen its productive life. Radial Hydraulic Jet Drilling Status Monitoring Device for Radial Drilling System (HRM) Sino Australia’s EOR technology is PROVEN to increase production yields by up to 3-5 tonnes per day. It does so by increasing flow rates from existing productive oil and gas wells. The technology also has the ability to recover oil and gas reserves previously thought to be unattainable. This capability can extend the life of a well by 1-2 years. Patents are held over both technologies. Zhaodong Huaying Oil Drilling Service Company (PRC) received published patent notification for the Radial Hydraulic Drilling Technology and Radial Drilling System Working Status Monitoring Device on 18 January 2012 and 28 March 2012 respectively. Both patents were granted by the Intellectual Property Office of the People’s Republic of China and cover any future developments/enhancements to the technology. Where do Sino Australia Oil and Gas operate? As Zhaodong Huaying, Sino is an established participant in Chinese EOR services. Sino's operations are currently focused on the Daqing, known as ‘the oil capital of China’ in north-east China, Daqing is the heart of China's largest and oldest oil fields. This is where the current set of technologies and practical experience is geared to the geology, and servicing high demand. This region has seen over 50 years of oil extraction and this long history has left many of the oil wells in the Daqing fields either exhausted or producing low outputs – a situation that has resulted in an increasing demand for enhanced oil recovery techniques. The Company currently has technical personnel and six sets of EOR equipment based in the Daqing area.Their patented technology is proven in this region. They have local certifications, strong local knowledge of the market and established client service relationships with Chinese Government, State Owned Enterprises (SOEs), National Oil Companies (NOCs). Preparation for expansion into the Xinjiang Oilfield in the north-west and Changqing oilfield in central China are underway. Funding is required to upscale the company's equipment to meet demand and deliver continuous expansion in the major oil field services market. Growth is also planned through acquisition and merger opportunities with similar companies offering complementary oil recovery technology. There are also plans for expansion into international oil and gas markets through the licensing and distribution of the technology.